Definition
A bear market occurs when a share market experiences a sustained period of share price declines, typically around two months or more. Like a financial winter, everything seems to cool down. Bear markets are cyclical - lasting a few weeks to a couple of months; or long-term - stretching for years or even decades. It's characterised by:
- Negative investor sentiment: fear and uncertainty prevail
- Economic downturns: a slow economy or a recession may cause stock prices to fall
Bear and bull market cycles are a normal part of share markets.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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